Slovak economy poised to catch up to Czech economy

The Slovak economy is on course to catch up with the Czech economy in four years from now, but that doesn't necessarily mean that living standards will do the same because it's mainly in salaries, and in net salaries in particular, in which Slovakia lags behind compared to more advanced countries. This was reported in the Pravda daily on Tuesday, adding that it's up to the new Government to attempt to alter the situation by reducing payroll deductions. A four-member family with both parents on average salaries earns around €1,330 net per month, however basic costs typically reach around €1,000 per month. Conversely, an equivalent Czech family is left with €1,450 per month after payroll deductions and only has to spend around €950 on basic living costs. This leaves the Czech family with an extra €170 to dispose of each month. Net salaries in Slovakia would need to rise by around 2 percent more than their Czech counterparts each year for four years in order for disposable incomes to catch up, but it's currently expected that salaries will rise at the same rate in both countries, despite predictions of faster rates of GDP growth for Slovakia.